Choose the Word or Phrase in [ ] Which Will

question 10

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Diversification should [reduce the possibility of losing all your money | have little impact on the risk of losing money].

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Definitions:

Unamortized Discount

The portion of a bond's face value that has not yet been expensed as interest over time to reflect the bond being issued below its par value.

Redeemed

The act of paying off or buying back something, such as repaying a bond or exchanging a coupon for goods.

Gain On Redemption

The financial benefit gained when a debt instrument, such as a bond, is redeemed before its maturity at a value higher than its book value.

Discount On Bonds Payable

The difference between the face value of bonds and their selling price when sold for less than their face value.